AbstractThe low THz band is a promising candidate to enable data rates of up to 1 Tbit/s. To develop suitable communications systems, novel simulation approaches are needed that account for the specifics of the evolving technology. This article presents a modular link level simulator for the physical layer of beyond‐5G and 6G wireless communication systems in the THz range. The simulator, that is oriented toward the IEEE Std 802.15.3d‐2017 is contrasted to the state of the art of physical layer simulation tools. Its concept and basic building blocks are presented and the simulator is validated by channel simulations considering an AWGN channel model. Moreover, it is applied to a top‐of‐rack scenario in a wirelessly augmented data center. Different parameter sets are compared showing that a LOS condition and sufficient transmit power are a prerequisite in order to profit from the large bandwidth in the low THz range. The extensive data set of simulation results serves as input for future studies with higher layer simulation tools.